Employment Guide: Barnes: Increase employment by funding direct projects, cutting wasteful spending

Compared to other “rust belt” cities, Pittsburgh has adapted extremely well to the post-industrial national economy. However, work must still be done in order to continue the progress in Pittsburgh and Pennsylvania, as a whole.

Keeping Pittsburgh’s economic ventures solvent is integral to the longevity of the city’s prosperity. Oftentimes lawmakers, whether on the local, state or national level, speak in generalities when addressing fiscal and financial matters: “We need to tax the rich more,” “Taxes should be cut across the board,” “Government spending must be increased,” “Government spending must be slashed.”

In reality, policy making and economic stimulation are far more complicated than simple overgeneralizations. Lowering unemployment while providing sustainable and worthwhile jobs should be the focus of detail-orientated plans seeking not only to lower unemployment temporarily, but to lower it indefinitely.

According to the Bureau of Labor Statistics, Pittsburgh’s unemployment rate sits at 6.2 percent, compared to Pennsylvania’s and the country’s rate of 6.9 percent and 6.7 percent, respectively.

Comparatively speaking, Pittsburgh is doing well. But it can do better.

Rather than simply “taking care of business” or “putting people back to work,” lawmakers must be pressed to explain exactly how they are going to take care of business or put people back to work.

 One issue that needs much attention is our country’s and state’s crumbling infrastructures. According to the American Society of Civil Engineers’ Annual Report Card, Pennsylvania is in dire need of structural improvement. Infrastructure projects that are pertinent to regional employment can help facilitate jobs, and Pennsylvania has no shortage of infrastructural problems.

Of Pennsylvania’s 22,280 bridges, 27 percent are considered structurally deficient, while 17 percent are simply deemed functionally obsolete. Aging wastewater systems are discharging billions of gallons of untreated sewage into Pennsylvania’s surface waters each year. It is estimated that the state must invest $28.3 billion over the next 20 years in order to repair and upgrade existing systems, as well as meet regulatory requirements and increasing demands. The report also states that 38 percent of Pennsylvania’s roads are in fair to poor condition. Considering that Pennsylvania’s highway network ranks 5th in the entire nation, totaling 116,000 miles between local and state roads, the challenge, but also potential, for improvement is great. Additionally, mass transit has increased in recent years more than any other mode of transportation, which has saved roughly 186 million gallons of gasoline. 

For state lawmakers — Republicans and Democrats, alike — increasing funding for infrastructure should truly be a no-brainer. According to a University of Massachusetts-Amherst study, for every $1 billion spent on construction jobs to improve infrastructure, 19,795 jobs are created. Therefore, this approach has proven to be a productive measure the government can take to increase employment through specific initiatives.

Infrastructure is only one of a number of sensible initiatives legislators can pursue to improve employment figures not only in Pittsburgh, but for the state, as a whole. 

For instance, the Congressional Budget Office has concluded that simple income tax cuts are less effective than payroll tax cuts, especially when given to small businesses, which are responsible for creating 65 percent of all new jobs. According to their findings, the CBO has stated that for every $1 billion in payroll tax relief, 13,000 new jobs are created.

So how do legislators find room in the budget for this additional spending? Simple: eliminate government waste. 

In a nation more than $17 trillion in debt, exposing unnecessary spending is a popular pursuit, perhaps best illustrated by Oklahoma Senator Tom Coburn, whose 2013 findings, according to his website, highlighted “100 examples of wasteful and low-priority spending totaling nearly $30 billion.” Pittsburgh, despite its relatively stable situation, is no exception.

In recent years, Pittsburgh has been attacked for and accused of frivolously spending government funds. In 2009, then-Councilman Patrick Dowd controversially tied a price tag labeled $1,010 to a city trashcan, attempting to represent the wasteful spending of then-Mayor Luke Ravenstahl’s administration. But with a new mayor comes new promise for fiscal responsibility. 

Mayor Bill Peduto has targeted and attacked government waste head-on and should be applauded for doing so. Peduto has issued executive orders revoking nearly 300 city employee parking passes.

“The number of employees who receive these unrestricted parking passes has exploded in the last several years and it’s past time to reign it in,” Peduto said. “The vast majority of those who have them now got them as favors or gifts. That is a waste of public dollars.”

Additionally, Mayor Peduto has banned city officials from having their names placed on city property, such as on garbage cans and vehicles. According to the Pittsburgh Post-Gazette, this move contrasts with those made by many of Peduto’s predecessors, especially Luke Ravenstahl, who spent $252,000 in state grant money on cans that bore his name and the slogan: “Taking care of business.”

Such seemingly trivial matters do not appear connected to employment, but in reality, they are.

 Money spent in a wasteful manner takes away from advantageous government investment in the community and region. Rather than discussing general policy while using their positions for self-advertisement, lawmakers must allocate money in a direct and transparent manner. This way, public spending can be scrutinized and policy makers can be held accountable.

The government should focus its economic relief efforts on real depth rather than ineffective breadth. Additionally, tax policy must be clear and direct, allowing businesses — small ones in particular — to prosper and create jobs, consequently helping not only employers but also employees and ultimately leading to increased employment and sustainable economic growth.

Write to Matt at mrb111@pitt.edu.